Mebane staff present $41M-plus capital menu; council asks for priorities and funding options

City Manager White opened a budget work session focused on long-range capital planning and told the council staff would present updated cost and operating estimates for previously discussed projects. "These tax increases that you will see are not recommendations," White said, framing the slides as illustrative scenarios for council consideration.

Staff reviewed three previously discussed projects in detail: a proposed community park south of the interstate, Fire Station 4, and a new police station. Preston, a city staff presenter, said the construction-only estimate for a community-park–style facility is $16,800,000 and stressed the project could be built in phases. "We're focused on $16,800,000 to build a community park style of park," Preston said. He noted the slide package excluded land-purchase costs and showed a 20-year debt-equivalent tax impact for construction and recurring operating expenses.

On Fire Station 4, staff said two developer-committed sites exist (east and west). The fire chief identified the west-side site near Ralph Scott Parkway as a priority area because of recent growth and extended response times; he also said the truck intended for Station 4 is expected "the end of '25, December '25, January '26." Staff warned that formal transfer of donated parcels depends on road and utility construction and completion of required legal documents.

The police-station concept presented was a 20,000-square-foot facility priced at about $17,200,000 with room to add 10,000 square feet later. Staff said a new police station would not immediately require additional sworn personnel and could free existing space for other departments, including an IT data center.

City Engineer Franz Hope detailed a separate public-works and utilities plan that centers on an immediate need for Equipment Shed No. 1 (16,000 sq ft, drive-through bays) and phased expansion of adjacent buildings. The project-cluster estimate is about $8,000,000, with near-term CIP items totaling roughly $1,765,000.

Staff also presented an intergenerational recreation center concept — a roughly 40,000-square-foot building with a pool — estimated at $18,500,000 to construct and requiring approximately $1.4 million a year to operate at the staffing levels modeled. Staff said partnerships (for example, with a YMCA or a nonprofit operator) could reduce direct city staffing costs but would likely change residency-fee structures and program access.

Finance staff outlined the city's fund-balance position and policy options. The finance director explained the five fund-balance components and noted the city's fund balance remains well above its 33% policy benchmark when measured using available metrics; staff provided scenarios that would tie fund-balance targets more closely to capital needs or restrict appropriations to one-time capital uses.

Council members pressed staff on trade-offs and timing: whether the south-side park would duplicate existing facilities, how the 2¢ capital-reserve tax could be deployed, whether the capital-reserve 2¢ can be used to pay ongoing debt or staffing (staff and the city attorney said capital-reserve funds are restricted to capital, not debt or personnel, except via council action and statutory compliance), and how growth assumptions change debt-service capacity. Several council members urged that securing land for a south-side park should be pursued quickly because land is scarce; others prioritized infrastructure — the public-works shed, Fire Station 4 and the police station — over new amenities.

There were no formal votes taken; staff were asked to refine priorities and return with funding scenarios, including bond and debt alternatives and a consolidated comparison of project costs and tax impacts. White told the council staff will bring departmental presentations and further budget work sessions on March 13 and March 20, with a final work session scheduled for April 10.

Staff and council agreed on next steps: produce a one-page comparison of project costs and tax-equivalents, clarify which funds are already appropriated in CIP totals, refine phasing options, and present bond-versus-debt-cost scenarios and likely timelines. The meeting adjourned with staff directed to return with the requested analyses.